CEU Electronic Theses and Dissertations, 2022
| Author | Mahrukh Khan |
|---|---|
| Title | Analyzing the Effect of Customer Cannibalization by the Opening of New Sites: Causal Analysis |
| Summary | Companies face uncertainty when making the decision to construct a brand-new store in an area where one of their stores is already situated. My company finds themselves in the same position. Even though it belongs from the retail industry, selling items of necessities that will always have a demand, it could face lower performance in one of its store due to the changing behavior of customers who are attracted to shopping at its newly opened stores. But at the same time, store openings are important for the company to capture a larger share of the market. The impact the new stores could have on already existing stores is called the effect of cannibalization. Cannbibalization will be studied by taking the difference of the change in number of customers in two type of store categories: stores that had new stores opening in nearby distance in a defined time-period versus those that did not have any new store opening throughout that time-period. This project aims to explore whether the company faced the effects of cannibalization over the years by gauging the trend in monthly average number of customers through causal analysis. It will use event studies method to study the effect of opening new stores, our causal variable, on the subjects that are the previously existing stores. It will provide a straightforward method to show the difference in the change in monthly average number of customers once new stores open with visualisations and fixed effects regression. |
| Supervisor | Bekes, Gabor |
| Department | Economics MSc |
| Full text | https://www.etd.ceu.edu/2022/khan_mahrukh.pdf |
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